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Effects of National Science and Technology Programs on Innovation in Chinese Firms

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EffectsofNationalScienceandTechnologyProgramsonInnovationinChineseFirms*XingShiSchoolofEconomicsHefeiUniversityofTechnology193TungxiRoadHefei,China230009xingshi.shane@hfut.edu.cnYanruiWuDepartmentofEconomicsBusinessSchoolUniversityofWesternAustralia35StirlingHighwayPerth6009,Australiayanrui.wu@uwa.edu.auDahaiFuSchoolofInternationalTradeandEconomicsCentralUniversityofFinanceandEconomics39XueyuanRoadSouth,HaidiangDistrictBeijing,China100081fudahai@126.comXiumeiGuoCurtinUniversitySustainabilityPolicyInstituteandSchoolofMarketingCurtinUniversityKentStreet,BentleyPerth6102,Australiax.guo@curtin.edu.auHuaqingWuSchoolofEconomicsHefeiUniversityofTechnology193TungxiRoadHefei,China230009wuhuaqing@hfut.edu.cnAbstractThispaperaimstoevaluatewhethernationalscienceandtechnologyprogramsinChinahelpboostpri-vateinvestmentinresearchanddevelopmentandimprovefirms’productiveefficiencyandinnovationperformance.Theempiricalanalysisisbasedonasurveyof443innovativefirmsinChinaduringtheperiodof2008–11.Amatchingestimatortogetherwithadifference-in-differenceapproachisemployedtoinvestigatetheeffectofundertakingnationalscienceandtechnologyprograms.Theresultsshowthattheeffectivenessofnationalscienceandtechnologyprogramsmaybeover-estimated.Therearealsoheterogeneouseffectsacrossfirmsofdifferentsizesandownershipandwithdifferentprograms.*WorkonthispaperbenefitedfromfinancialsupportoftheAustralianGovernmentResearchTrainingProgramScholarship,ChinaNationalSocialScienceFoundation(#18ZDA064),andChinaNationalNaturalScie

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